How You Can Help Society and Get Paid Tax Free
A diversified portfolio includes having more than just stocks in different industries in your investment account. Bonds have always been the outcast of the investing world since they have no flashy returns but they compensate for that by offering a steady stream of income at a set interest rate (coupon). If you are buying municipal bonds the interest payments are usually tax-free.
Here is a great example of how you can help society and get paid through bonds.
Bonds are among the most productive assets not only in the world, but throughout all of human history, stretching back as a prime form of capital sourcing for thousands upon thousands of years as they simultaneously build nations and generate passive income for the owners. A portfolio stuffed with bonds is not dead money, just sitting there. Quite the opposite! It doesn’t matter if we are talking about savings bonds or debentures issued by a local factory to expand production.
A bond is a great way to round out any portfolio. They are one of the most safe and reliable investments anyone can make. This is the number one way to generate passive income when you are ready to retire. If you buy a municipal bond you can even tell your friends you helped save a town today!
Read about a perfect example of how bonds work.
About Shaun Archer Tatum Shaun works in corporate finance in New York City. He has done financial consulting for several start-ups and has worked at several Fortune 500 companies. He has contributed several finance/investing articles on Seeking Alpha which have been published on Yahoo! Finance.